Insights
Dispute boards.
A dispute board is a standing panel appointed when a project starts. It follows progress and helps the parties to avoid disputes or to resolve them quickly.
How it works
- The members are appointed at the start of the project and stay in place until completion.
- They receive progress reports and may visit the site.
- If a dispute arises they give a recommendation or a decision, as the contract provides.
FIDIC 2017
The 2017 FIDIC conditions of contract provide for a Dispute Avoidance/Adjudication Board (DAAB). The 2017 edition places more emphasis on avoiding disputes than the 1999 editions and separates a claim from a dispute: a claim is a request for an entitlement under the contract, and a dispute arises if the claim is rejected or ignored.
When it suits
Dispute boards suit large or long projects where early, informed decisions save time and cost.
Sources
- FIDIC, Conditions of Contract, 2017 edition, dispute resolution provisions.